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Eco Science Solutions Inc (OTCMKTS:ESSI) Keeps Pumping

Written by

Jarrod Wesson

Published on

May 10, 2017

Eco Science Solutions Inc (OTCMKTS:ESSI) keeps sending new information to the market to keep its stock price afloat. Among the news, we could find that the company is acquiring a new business, and a new Licensing Agreement was signed with a new partner. We will review this news in this article. The background of the company will not be included, so we encourage investors to check the previous pieces on this name in order to find it. Have a look at them first of all:

Have a look at the recent share price movements and note that the share price collapsed after our last piece:

SourceRecent DevelopmentsThe company is buying a bankOn May 5, 2017, the company announced that it had signed a letter of intent with Ga-Du Bank, Inc. to acquire the bank. Both cash and stock will be used for the transaction. What is a letter of intent? An LOI or letter of intent, in M&A process, is the first step before the negotiation process begins. The company did not put out yet the merger contract and the parties did not arrive to any definitive agreements. Usually, due diligence will have to be performed and the company may have to acquire financing commitments from banks and the shareholder’s approval. So, is this only smoke? Maybe. If the company does not continue communicating the transaction, novice traders who bought shares expecting to profit from the synergies of the transaction may lose some money since the transaction may never close. Let's review the initial conditions and see why a cannabis company decided to buy a bank:ESSI will use the bank to make payments to its customers in the cannabis industry. This is what was noted in the press release:"ESSI will own and operate a financial banking division providing payment processing, cash management and financial services to its customers in the cannabis industry. " SourceAdditionally, John Lewis, who is the current president of the Bank as well as Governor of the Central Bank of SCNRFP, said the following about the transaction:

"All parties involved are enthusiastic about the Bank's potential to financially serve the cannabis marketplace. Current business owners working in medical marijuana are doing a tremendous job, but are truly in need of formal banking services so they can soundly manage their business finances. By combining Ga-Du Bank with Eco Science Solutions, we see how our synergies will create an important financial institution to serve a category that is in need of a fully integrated vertical product suite." Source

Buying a bank is not at all an easy thing. Governmental agencies will raise a lot of questions about the transaction and the merger will need to be approved by these bodies. Check this website for more information about the M&A supervisors and conditions or subscribe to our email services. In addition, the sum that the company will pay was not disclosed yet.New Partnership with Roaring Lion Tours, Inc.On May 3, 2017, the company announced an agreement with Roaring Lion Tours, Inc. to produce educational contents about the alternative medicine category. The following was said by Jeff Taylor, CEO of Eco Science Solutions, Inc:

"There is a continuing need to bring awareness to the benefits of medical marijuana as a key category in the alternative medical health industry, It is thrilling to be working with Stephen Marley and the team at Roaring Lion Tours, Inc. to fulfill our ongoing commitment in creating unique content that we can marry with our technologies to educate and inspire the world about alternative medicines." Source

ConclusionESSI announced new ambitious developments very recently that included the acquisition of a bank and a new joint venture with a content producer. As we noted in our previous articles, we feel this is just another attempt to keep the share price up. We certainly believe Attorney General Jeff Sessions may a thing or two to say about a bank focused solely on the cannabis industry. We continue to urge caution with ESSI and buyer beware! We will be updating our subscribers as soon as we know more. For the latest updates on ESSI, sign up below!Disclosure: We have no position in ESSI and have not been compensated for this article.